- Determine whether the following statement is true or false: Present value equals the present value of all cash flows accruing to the asset’s owner.
- What is the present worth of a future cost of $182,000 to Corning, Inc., 6 years from now at a compound interest rate of 12% per year? a. $82,069 b. $102,092 c. $359,232 d. $92,201
- Project K costs $52,125, and its expected net cash inflows are $12,000 per year for 8 years, and its WACC is 12 percent. What is the project’s NPV?
- You want to make an investment that will yield a lump sum of $21,794 in 5 years. You will invest at a nominal rate of 10%. How much do you need to invest today to reach the above future value?
- What is the PV of $100 per year for 5 years with a lump sum in year 5 of $1,000 if the rate is 5%?